Low Inventory to begin 2013
The Greater Boston Area real estate market has been experiencing low inventory in the past several months. This shortage of Real Estate, coupled with significant pent up demand has introduced a stabilization of prices in the marketplace. Properly priced homes are selling with an ever decreasing number of days on the market and attendance at open houses has been skyrocketing.
As 2012 has come to a close, Real Estate professionals in the Greater Boston Area are showing increased optimism for 2013. A year that initially presented itself with caution due to recent years of poor market conditions, 2012 showed a binding cooperationamongReal Estate brokerages, banks, construction firms, and the other related industries. All of those involved in some form with this field of Real Estate have gone beyond prior expectations by pushing on and proving that a recovery is here to stay.
Such a breakthrough has been met by a renewed sense of confidenceamongthe buyers and sellers. Moreover, this growing faith in the investment in property only had a wonderful domino effect in the marketplace. It seemed as though month-over-month and year-over-year statistics were being consistently beaten by the unfolding of 2012s rising journey.
The mild temperatures last winter generated what became known as an early spring market. In the Greater Boston Area it is commonplace for the spring to be the most active time of the year. The industry reaped the benefits of this early, welcomed warmth. However, today, things are different than they were last year, although it must be shared that momentum is now picking up.
Many new listings are coming on the market for the first time in 2013. We are also seeing listings taken off the market for the holiday season returning with adjusted price tags.
Bostons condominium market is definitely seeing some interesting activity. If we compare the MLS numbers from January 23rd 2012 to our present market we see:
- The average days on the market for a property in 2012 was 132, whereas in 2013 it is just 103 days
- In 2012 by this time saw 1,034 condominiums on the market, and today there are just 534; just about 52% less compared to where we stood last year
- When studying properties priced over $2 million, there is not a large differential in the amount of properties available from year-to-year; however in the lower price points the inventory is far more reduced in 2013 compared to 2012
- The median price for condominiums by the end of January in 2012 was at $448,250, and today in 2013 is up to $489,000
- The average prices as well are higher in 2013, as in 2012 they were at $746,035 yet today have had a boost to $884,218
- The total market volume of properties available on the 23rd of January in 2012 was $771,400,817, and today is far less at just $471,172,581; just 61% of the figure from 2012
What do these findings mean? One point is that low inventory with high demand for is causing higher than normal average and median prices.
Is this good for the Real Estate market? Recent reports from our blogs have suggested this is not the case. Boston has been defined as a city of cranes of late, meaning developments are happening that will benefit our market by providing increased jobs, a far higher inventory of housing units, office and retail spaces, restaurant facilities and more. The betterment in the market from 2012 has provided that inherent trust in Boston by developers and business owners going forward which in due time will see the city grow and prosper at an accelerating rate.
If we look to the Boston economy as a whole we see that the construction industry is booming (jobs are up 12%), construction spending is soaring, housing permits are at a 4.5 year high, builder confidence remains steady, housing starts are at the highest level in 4 years, and according to Moodys Investors Service, Boston is leading the Nation towards a commercial real estate recovery.
It is the perfect time to list your home for sale. Our economy is strengthening and both domestic and international buyers are making their move to purchase real estate. The number of active listings on the market is very low leaving buyers with very few quality options to choose from.
